On Friday, the S&P 500 closed out the week, month and quarter at 2834. While headlines tout that this is the S&P 500’s best first quarter since 1998, how quickly they forget that last quarter of 2018 when December had its worst performance since 1931. In fact, on 30 September the S&P 500 stood at 2913, about three percent above current levels. However, a major point about this current market is that it is trending upward instead of giving us the volatility associated with the end of 2018. Another bullish sign is that the S&P 500 should have its "Golden Cross”, when its 50 day Moving Average (MA) crosses above its 200 day MA, next week. For TSP TIPS, the F fund hit a new high on Wednesday, the C fund had its “Golden Cross” on Tuesday and it looks as if both the I and S funds will follow in the next week or two. Going back to my first two sentences, TSP TIPS had a good first quarter but lagged the S&P 500. However, if you go back to 30 September, TSP TIPS has outperformed the S&P 500 by 2.4 percent while also minimizing volatility. Going into next quarter, our Trending Investment Portfolio Strategy (TIPS) will be to continue to increase our equity exposure as long as the markets cooperate.
On Friday, the S&P 500 closed out the week, month and quarter at 2834. While headlines tout that this is the S&P 500’s best first quarter since 1998, how quickly they forget that last quarter of 2018 when December had its worst performance since 1931. In fact, on 30 September the S&P 500 stood at 2913, about three percent above current levels. However, a major point about this current market is that it is trending upward instead of giving us the volatility associated with the end of 2018. Another bullish sign is that the S&P 500 should have its "Golden Cross”, when its 50 day Moving Average (MA) crosses above its 200 day MA, next week. For TSP TIPS, the F fund hit a new high on Wednesday, the C fund had its “Golden Cross” on Tuesday and it looks as if both the I and S funds will follow in the next week or two. Going back to my first two sentences, TSP TIPS had a good first quarter but lagged the S&P 500. However, if you go back to 30 September, TSP TIPS has outperformed the S&P 500 by 2.4 percent while also minimizing volatility. Going into next quarter, our Trending Investment Portfolio Strategy (TIPS) will be to continue to increase our equity exposure as long as the markets cooperate.